The property market in 2022 in Turkey is facing a big change. The real estate sector is growing due to the immensely increasing house prices.
In this blog post, we will discuss the recent changes in the real estate market of Turkey and give the reasoning behind these drastic changes. We also look at the case separately for Turkey and Istanbul and provide brief information such as the average house prices and the regions where the biggest and quickest profits are made.
Then, we will mention the benefits of real estate investment in Turkey and lastly explain the major factors that determine a real estate’s price in Turkey.
What Has Changed in the Real Estate Market in 2022?
From January until March, the average house price in Istanbul became 1.400.000 TL ($95,000 at the time) from 730.000 TL ($54,000 at the time). When it comes to Izmir, it starts from 693,000 TL ($13,600) to 1,220,000 ($90,000). In Ankara, the capital city of Turkey, prices vary from 397.000 to 720,000 TL ($29.300 to $49.000).
By the end of April 2022, the house price had increased by 147.21% in Turkey. And the average house price became 671.580 TL ($45.425), while the average size was 130 sqm. The average price per sqm is 8.252 TL ($558). It is in the range of 2.533 to 20.306 TL ($171 to $1.373) depending on the cities, Mugla being at the top.
The amortization of Turkish houses is 18 years on average. By the end of April 2022, if we look at the annual averages, house prices have increased the most in Antalya, Istanbul, Aydin, Mersin, and Nigde. Meanwhile, these prices decreased the most in cities such as Agri, Elazig, Siirt, Bitlis, and Ardahan.
In the last year, the quickest profit was made in Mus, Istanbul, Kars, Ankara, and Antalya, whereas cities like Aydin, Aksaray, Sivas, Nigde, and Trabzon witnessed the slowest.
By the end of April 2022, the average house price per sqm in Istanbul had become 17,825 TL ($1,200), according to a real estate site statement. As another site states, house prices per sqm show a difference from 7.368 to 49.124 TL ($498 to $3,321). Sariyer tops the charts with 46.221 TL ($3,125) on average.
In the last year, the average house price in Istanbul increased by 172.78%. According to the data, the quickest profit is made in Beyoglu, Eyupsultan, Esenyurt, Gaziosmanpasa, and Fatih in this period whereas the slowest is made in Beykoz, Kadikoy, Bakirkoy, Besiktas, Sariyer.
What are the Reasons for the Rise in Real Estate Prices in Turkey in 2022?
The real estate sector took a slow entrance to 2021 as the lockdowns due to Covid happened. And as the real estate loans, interest started to rise. Investors started to lean toward investing in houses starting from June to avoid risks due to inflation, whereas changes in house preferences, people who move to the countryside, and the beginning of the new semester of universities led to a rise in demand.
In the January-November period, 1.265.000 houses were sold. With construction getting more expensive and the supply decreasing, the house became the most profit-making real estate type. Not only in Turkey, this trend happened to be this way, but all over the world. House and renting prices escalated quickly. Logistics and storage came second after housing (L.G. Demirciler, December 2021).
Does it Still Make Sense to Make Real Estate Investment in Turkey in 2022?
As stated above with data, Turkey is a highly profitable country in the real estate market. Also, gaining citizenship is possible by buying at least $400,000 worth of an estate. If you buy an estate in Turkey, you and your family members can have a residency for one year.
For more information about the Turkish Citizenship Program, visit our page.
What are the Factors that Determine the Price of Real Estate in Turkey?
- Region: In neighborhoods where the upper-class lives, the price tends to be more expensive.
- Convenience to public transportation: Real estates close to the metro, Metrobus, and bus stations are more expensive.
- Access to workplaces: People would like to live in houses close to their workplaces.
- Access to the central city: The price always increases as the estate is closer to the city center.
- Expertization: Currently checked houses are seen as safer.
- Maintenance status: If the estate requires modifications, it is usually cheaper to cover modification expenses.